dr58lj15
Level 3
05-08-2021
11:40 PM
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I have a sale of rental property with a gain to a related party. In addition, does the depreciation have to be recaptured?
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TaxGuyBill
Level 15
05-09-2021
10:07 AM
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Because it was sold at a gain, it is reported as any other sale (usually on the Asset Entry Worksheet).
Yes, selling the property at a gain will result in Unrecaptured Section 1250 Gain (tax due to the depreciation).
athaureaux6
Level 8
05-09-2021
10:32 AM
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The depreciation will have to be recaptured even if they did not take in previous tax returns. If it was allowed, it will have to be recaptured when adjusting the basis. I believe that is what they law says. I interpreted it that way. Excuse me if I am wrong.
